I agree with @jca2.
Many many people are worth $1—$2 million by the time they are in their 70’s. That’s not rich. He’s been earning $150+ as a senator for many years.
This is what we “liberals” talk about all the time. People making salaries of $150k+ SAVE a lot of money. Conservatives with lower-middle incomes may want to believe the more money the more spending, and so they think taxing spending is better, but there is a point where most people don’t spend more. They squirrel away for rainy days, safety, for retirement, and to give to their adult children eventually.
Look at Q’s on here and you will see often times the jellies with the most money spend very little, and conserve money in many places.
This is not what happened to me, but I will give you a for instance. I bought my second house for $225,000 in 1995. I think my husband and I were making $80k or $90k combined. If I had continued living there the house is now worth $650k with upgrades, so I’m going to go low and say $580k if I had never spent much money on an overhaul. My house would be paid off by now, so I would own it outright.
Our salaries continued to grow, but most expenses stay static. Let’s after 4 years we are making $150k. Sure we spend a little more, but we are still saving $40k a year, plus earning interest, and even a little investing in retirement funds earning a little more. A portion of the money is in 401k’s and and IRA’s.
Salaries continue to increase, but the average couple probably has a couple of kids, which eats at being able to save. Let’s say the mom goes part time, and her wage goes to child expenses, but her husband is making well over $100k, maybe $120k.
Let’s see so far.
Wealth age 50:
House $580,000
Savings at $40k a year for 23 years is $920,000 (that’s without compounding interest or the stock market!).
So, that 50 year old married couple is at over $1.5 million more or less in total wealth.
Some years maybe the savings was less, but remember that with interest the money is growing.
Lower it saving only $20k a year, but add ten years to age 60. Still a huge number. Just earning savings accounts or CD’s an average of 2% over time would add a few hundred thousand.
This is a very common scenario the past 30 years. Like I said, it’s not my actual scenario. I didn’t stay in the second house, we moved after 4 years. I don’t have kids, but I spent a lot on cars that mostly depreciated, probably similar money. The salary was more or less accurate when we bought the house, but after that I took liberties in my example to demonstrate the possibility of how wealth accumulates. I didn’t work at all for several years, I was part time many years, right now my husband is unemployed and I make about $9,000 a year.